Classification of an IRA as SEP or simple

[trberkovich]

TurboTax asks whether my IRA has a classification of SEP or simple.  My 1099-R form has the line of IRA/SEP/SIMPLE checked on line 7 of the form.  How do I enter the correct classification into TurboTax?

[DavidD66]

There is a box to check when you enter your Form 1099 to indicate that it is an IRA/SEP/SIMPLE.  In addition, after you finish entering the form,  the program will ask you if it was an IRA/SEP/SIMPLE.  So, when you enter your Form 1099-R, check the box, and answer Yes. 

[trberkovich]

There is another screen with individual line items.  One line is SEP.  A separate line is simple.  I tried checking both lines but TurboTax would not accept two checks.  I clicked simple for now.  But I don't know what my IRA really is, SEP or simple.  What do you suggest?  As a separate but possibly related issue, TurboTax will not allow me to fill out an 8606 form.

[BillM223 · Accepted solution]

Simple and SEP-IRAs are two different types of IRAs with somewhat different rules. Look at this link for a brief discussion by the IRS on these retirement accounts.

Normally, each of these are part of a small business. If you never worked for a small business (less than 100 employees), you probably don't have either one, but just a regular IRA.

You should be able to call the administrator who sent you the 1099-R and just ask what type you have.